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A Paternalist’s Mistake: Rent Control

Author

Listed:
  • Arias MIGUEL

    (Loyola University, New Orleans, USA.)

  • Christine ANDERSON

    (Loyola University, New Orleans, USA.)

  • Walter BLOCK

    (Loyola University, New Orleans, USA.)

Abstract

Rent control, to the economically uninitiated, sounds like a good idea. After all, given that poor people spend a disproportionate percentage of their incomes on housing, what policy could possibly be of more help to them than to lower their rents? Profit-seeking landlords can hardly be expected to do so on their own. Their inability to undertake so public-spirited a policy thus constitutes a “market failure,” and only government can ride to the rescue the suffering masses. This at least is the story widely told by journalists, clergy, teachers, etc. The present paper is an attempt to shed some light on the very opposite perspective: that rent controls lower the supply of residential rental housing, and thus hurt the poor, the very people supposedly helped by this unwarranted legislation.

Suggested Citation

  • Arias MIGUEL & Christine ANDERSON & Walter BLOCK, 2016. "A Paternalist’s Mistake: Rent Control," Journal of Economics and Political Economy, KSP Journals, vol. 3(4), pages 627-637, December.
    • Handle: RePEc:ksp:journ1:v:3:y:2016:i:4:p:627-637
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    References listed on IDEAS

    as
    1. Blair Jenkins, 2009. "Rent Control: Do Economists Agree?," Econ Journal Watch, Econ Journal Watch, vol. 6(1), pages 73-112, January.
    2. Alston, Richard M & Kearl, J R & Vaughan, Michael B, 1992. "Is There a Consensus among Economists in the 1990's?," American Economic Review, American Economic Association, vol. 82(2), pages 203-209, May.
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    More about this item

    Keywords

    Price control; rent control; housing; profits; shortages.;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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